The Martindale-Hubbell survey suggested that the most popular billing method offered by law firms in Ukraine is the hourly rate with cap. How does that compare with your own billing practices?

Among the international firms working in Ukraine, it’s common to have an hourly rate structure, coupled with an estimate and assumptions for cap. If it looks like the estimate will be breached, the firm will notify the client ahead of time - so there are no surprises at the end of the day.

Our firm provide its clients with estimates, but tries to avoid the term “capped rate ”because it comes with certain assumptions. Before we provide our estimates, we try to establish what the relevant variables might be.

Some law firms – especially those who haven’t been in the Ukrainian market for very long – do try to offer their clients a flat fee rate. There’s often some interesting “back and forths” between the law firm and its client, if the firm then tries to charge the client an unexpectedly larger fee.

With the distinction between 'foreign' and 'local firms' breaking down in many countries, how do firms such as yours position themselves in their chosen markets?

Our unique selling point is that we have local knowledge in each of the jurisdictions where we operate. In those markets, we believe we can put together a better team than the international firms can.

In general, a successful law firm is both local and international – its origins are no longer very significant to many clients. Internationally, we work with UK Magic Circle firms, and take part in joint pitches with them.

It probably helps that most Ukrainian law firms are fairly new. Until the fall of the Berlin Wall, there weren’t any private law firms at all - there was a vacuum, and people willing to fill it. Almost all of the core partners at Ukrainian law firms - in Kyiv at least - had their formative training in the US, and have either worked for US or UK law firms.

In general, the survey found that Ukrainian respondents tended to use similar criteria to those in other CEE countries when deciding which law firms to instruct. What is your perspective on this topic?

I think there’s a distinction between some of the larger Ukrainian clients – the state owned companies, the banks etc – and other Ukrainian companies. The larger companies will buy on price, but will only choose from a very short short-list of potential law firms.

Smaller companies don’t always understand that it’s important to weigh up cost versus value for money, when selecting their legal advisors. They tend to use which ever firms offers the lowest charge-out rates – and won’t even consider the qualities of the legal team that will be advising them.

In relation to why clients retain their existing law firms, Ukrainian respondents appear to be less demanding, compared with their CEE peer group. Does this sound correct to you?

It’s definitely true that Ukrainian clients tend to stick with people they know, but they prefer to work with two or three key different lawyers, not just one. As an outside advisor, I’ve never felt confident that there wasn’t a chance that I wouldn’t be replaced! It is possible to have good relationships with Ukrainian clients, but that should never slip into complacency.

Around 92 per cent survey respondent said they have never been asked to take part in a client satisfaction survey by their law firm - but 100 per cent they would take part, if asked. Does you firm organise such surveys?

Around two thirds of our firm’s clients are foreign investors. It is these type of clients who tend to respond to client surveys, and take them seriously. We obtain important feedback from our surveys, and follow them up with either face-to-face or telephone conversations at the end of each year. These follow-up sessions will typically involve the client, together with our business development team and the client’s relationship partner.

In general, how is the Ukrainian legal market coping with the economic downturn?

The market for legal services has declined this year, although our firm has suffered less than most. It’s likely that the market will continue to correct itself in the coming month. We anticipate that the smaller law firms starting to vanish, and be replaced by larger international and local firms.